EMTN Notes

TELEFÓNICA, S.A. as provided in article 82 of the Spanish Stock Market Act (Ley del Mercado de Valores), hereby reports the following

SIGNIFICANT EVENT

Today, TELEFÓNICA, S.A., through its wholly-owned subsidiary TELEFÓNICA EMISIONES, S.A.U., under its Guaranteed Euro Medium Term Note Programme (EMTN Programme) filed with the Financial Services Authority (FSA) in London on June 20th, 2011, has launched an issue of Notes guaranteed by TELEFÓNICA, S.A. in the Eurobond market amounting 700 million sterling pounds.

These eight (8) year Notes pay an annual coupon of 5.597% and have a reoffer price of 100%. Settlement and closing date is scheduled for execution on March 12th , 2012.

Madrid, February 27th, 2012